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8 Case Studies on the Connections
between Smart Growth Development and Jobs, Wealth, and Quality of Life in Communities
Economic Development and Smart Growth
8 Case Studies on the Connections Between Smart Growth Development and Jobs, Wealth, and Quality of Life in Communities
Editors: Alex Iams Pearl Kaplan
International Economic Development Council 734 15th St. NW, Suite 900 Washington, DC 20005 202.223.7800 www.iedconline.org
This report was developed under a cooperative agreement between IEDC and the US Environmental Protection Agency (PI-83224701-0). The opinions in this report do not necessarily represent the views of the EPA.
Editors Alex Iams Associate, Advisory Services & Research International Economic Development Council Washington, DC Pearl Kaplan Senior Associate, Advisory Services & Research International Economic Development Council Washington, DC Case Study Authors Alex Iams Pearl Kaplan Andrea Bauerfeind Jenifer Huestis Kathleen Quillinan Contributing authors Mary Kay Bailey Jessica Schaeffer Project Advisor Ed Gilliland, CEcD, AICP Vice President, Advisory Services & Research International Economic Development Council Washington, DC
Cover Photo: Arena District in Columbus, Ohio. Courtesy of Nationwide Realty Investors.
TABLE OF CONTENTS
1 Introduction..................................................................................................................................... 5 Transit-Oriented Development ....................................................................................................... 8
The Brewery Blocks, Portland, OR .......................................................................................................... 8 Silver Spring Downtown Redevelopment, Silver Spring, MD............................................................... 14
Commercial Corridor Revitalization............................................................................................. 20
East Carson Street, Pittsburgh, PA ......................................................................................................... 20 Main Street Program, Burlington, IA ..................................................................................................... 24
Targeted Area Redevelopment ..................................................................................................... 29
Arena District, Columbus, OH ............................................................................................................... 29 Belmar, Lakewood, CO .......................................................................................................................... 34
Arts and Entertainment District .................................................................................................... 39
Fountain Square, Indianapolis, IN .......................................................................................................... 39 Artist Relocation Program, Paducah, KY .................................................................................................... 44
Why Smart Growth? Communities are facing new challenges in attaining economic growth, increasing wealth, and improving quality of life for residents. Economic development organizations (EDOs) strive to grow and improve the communities they serve by attracting and retaining development, residents, and jobs. However, growth and development, if managed improperly, can negatively affect a community’s quality of life, leading to automobile congestion, pollution, pedestrian-hostile neighborhoods, and sprawl. To accommodate an increasing population and demand for housing, services and infrastructure, local governments are seeking to sustain growth and increase their tax base without upsetting the qualities that make their communities pleasant places to live and work. Local governments seeking to create quality places are employing a range of asset-building techniques such as targeted area redevelopment, revitalization of commercial corridors with businesses, shops, and homes, and increasing transportation options. These strategies aim to provide more convenience and choice for residents and employees and emphasize quality of life. Increasingly, EDOs are recognizing that such land development practices are tied to economic success as well. For communities and businesses, attracting and retaining qualified employees is a major concern. To compete, many communities are employing innovative development strategies, often referred to as smart growth, that simultaneously support multiple economic and quality of life goals. Places that thrive in the new economy and attract an educated workforce are distinctive, attractive and rich in amenities.1 Existing infrastructure, proximity to employment, and access to transit are among factors that make communities attractive to developers, businesses and residents. Smart growth is based on mixing land uses, using land and infrastructure efficiently, creating walkable neighborhoods that are attractive and distinctive, providing transportation and housing choices, and
Principles of Smart Growth 1. Mix land uses 2. Use land efficiently 3. Create a range of safe, convenient, and affordable housing opportunities and choices 4. Create walkable neighborhoods 5. Foster distinctive, attractive communities with a strong sense of place 6. Preserve natural lands, farmland, and critical environmental areas 7. Strengthen and direct development toward existing communities 8. Provide a variety of transportation choices 9. Make development decisions predictable, fair, and cost-effective 10. Encourage community and stakeholder collaboration in development decisions
encouraging community and stakeholder collaboration in development decisions. IEDC’s report demonstrates the connection between smart growth strategies and economic development. Eight case studies present communities that implemented projects that incorporate smart growth principles and have also experienced economic development success in the form of increased tax revenue, more jobs, higher income levels, downtown revitalization, business growth and other economic indicators. How Smart Growth Relates to Economic Development In their classic text on local economic development, authors Edward Blakely and Ted Bradshaw note that, “industry and business regard livability as an important locational factor.” They assert that local governments need to “identify their quality of life attributes, build on them and effectively promote them to the business community.”2 Failing to invest in these attributes can have negative consequences for a local, state or regional economy. In 2003, for example, the Brookings Institution found that Pennsylvania’s land development practices, which had the effect of decentralizing growth and weakening the state’s
or take public transportation to homes. contributed to the state’s loss of young people and its subsequent job and wage stagnation.6 percent of the county’s land area.800 or so Main Streets communities. and can draw in talented workers. for instance. VA. many communities realize that their traffic conditions can have an impact on their ability to attract companies and workers. contaminated sites are restored. and shopping can help a community’s competitiveness as well as leverage significant public sector investments. property values and lease premiums. can be put back on the tax roles. Smart growth’s emphasis on providing transportation choices so that people can walk. Placing jobs. 67. and regional impervious surface cover and its attendant water runoff can be reduced. In suburbs and cities alike. uses a combination of building rehabilitation and design along with promotional activities and volunteer committees to bring economic revitalization to less productive commercial corridors.3 The current economy values proximity and clustering. services and shopping. The traditional office park model. Similarly. jobs. allows businesses to spread out their peaks in services. recognizing the increasing attractiveness of these areas to young professionals and empty nesters. Proximity improves a firm’s access to ideas.5 While most firms do not need to be located next to rivers or freight railways anymore.6 Economic developers can also improve a city or region’s tax base using smart growth practices by targeting development on idle or underutilized infill sites. each strategy presented in the IEDC case studies also encourages positive environmental outcomes. since the program’s inception in 1980. 75 percent of the county’s roughly 30 million square feet of new development has been concentrated in this subway corridor. For instance.reducing the amount of emissions from automobile trips. or take transit to destinations . By using a transit-oriented development model.8 About the IEDC Case Studies As the IEDC cases illustrate. it contributes 33 percent of the county’s real estate tax revenue. These properties. with buildings surrounded by parking and landscaping is inward focused and does not easily create opportunities for spontaneous interaction. bike. Many firms are finding that job sites integrated with other uses like restaurants.established communities.7 In addition to the economic gains. suppliers and resources. related businesses and even competitors.000 new businesses have been established. 308. drive. when economic development practices encourage the re-use of previously developed land.3 billion have been invested in the 1. shops and homes provide employees with choices and amenities rarely found in office parks. the Urban Land Institute and Pricewaterhouse Cooper’s annual “Emerging Trends in Real Estate” favorably rated 24-hour markets for over a decade. In Arlington. Although the corridor only makes up 7. Creating places with round the clock activity. helps create a sense of place. According to a 2004 analysis. the additional households can spur further business demand for nightlife. homes. more pristine lands can be conserved. shops and recreation in proximity increases business opportunities.4 Clustering of firms also allows for interaction between employees. for example. rather than being a drain on the city’s economy. practices like transit-oriented development can help improve air quality by giving people the option to walk. The national Main Streets program. over the past thirty years. The desirability for office space in mixeduse settings with access to transportation choices has been reflected in higher occupancy rates. a policy decision to run a subway line underground and target density around the corridor’s five stations has changed the economic fortune of the county. as opposed to a nine to five atmosphere. economic development activities pursued in tandem with smart growth strategies can create synergy that helps communities meet multiple goals. When housing is a part of revitalization. This report highlights the connections between smart growth and economic development though the application of four smart growth strategies in the following eight communities: 6 .370 new jobs have been created and over $23.
Lakewood. changes in tax base. enhance the tax base. Burlington. income. economic development professionals. Pittsburgh. IEDC drew on existing research and focused its efforts on the gaps in that research. OR and Silver Spring Station.Transit-oriented development (Brewery Blocks. these case studies are meant to be illustrative and demonstrate the direction and magnitude of change associated with the projects. IN and Lower Town. KY) In creating this report. Economic development organizations and local governments are realizing that by harmonizing these approaches they can create and retain jobs. Indianapolis. The team relied on locally-supplied data and where possible measured job creation. CO) Creation of arts and entertainment districts (Fountain Square. Given the limited amount and varying state of the data. rather than the projects’ exact impact. business growth and the ratio of public to private investment. Silver Spring. Portland. Columbus. where light rail has sparked $3 billion in new development. These case studies range from the use of transit-oriented development in Portland Oregon. As results from long-term projects develop. 7 . IEDC set out to produce case-based research to serve as examples and a source of direction for local government officials. vacancy rates. Paducah. the connections between smart growth and economic development have become more pronounced. Pennsylvania where it has nearly doubled the per capita income in the south side of the city. OH and Belmar. IA) Targeted area redevelopment and infill (Arena District. and improve quality of life in the communities they serve. and all readers concerned with the future of their communities. to commercial corridor revitalization in Pittsburgh. PA and Main Street program. property reuse and rehabilitation. MD) Revitalization of commercial corridors (East Carson Street.
Developed on a former brewery site. while enhancing the city’s transportation network and improving residents’ and employees’ quality of life. has generated over $1. The Portland Streetcar. “Brewery Blocks exceeded expectations for the city – it was a great project built in a short amount of time. Oregon Figure 1: View of the Brewery Blocks Source: Gerding/Edlen Development Introduction Transit-oriented development in Portland.4 billion in development along its 4. and has created a bridge between the city’s central business district and the Pearl District. 8 . Oregon (population: 538. Senior Development Manager at the Portland Development Commission.544).7-mile loop. has helped the city bring new jobs and investment to the urban core.TRANSIT-ORIENTED DEVELOPMENT The Brewery Blocks Portland. Brewery Blocks ties a cluster of residential and commercial spaces to the streetcar line.” said Bruce Allen. which opened in 2001. and built when the economy was down.
374 $45. and fashionable restaurants.359 2002 133.com burst. The district received another boost in 2001 when the city installed the Portland Streetcar line.350-space underground parking facility. new Class A office space. when its owners sold the Henry Weinhard brand to Miller Brewing Company.3 million in property tax revenue for the city of Portland. Gerding/Edlen took a significant gamble with this project.203 66. and Portland-based Gerding/Edlen Development purchased the land in January 2000. the Pearl Project Development The project is located on the former site of the Blitz-Weinhard Brewery.) 136. which opened in 1856. However. high-end retail destinations.7 million square feet of mixed-use development. The remaining $292 million came from private sources.City Context Brewery Blocks covers five blocks on the southern edge of Portland’s Pearl District.482 Figure 2: Location of Brewery Blocks in Portland Source: portlandstreet car. including stops accessible to Brewery Blocks.” said Allen.287 67.497 69. “Having five contiguous blocks of ownership is a unique real estate opportunity. Portland’s growth policy encouraged urban infill and made investments in projects such as the Brewery Blocks attractive. a former warehouse and light industrial area north of downtown. reusing historic buildings and maintaining a pedestrian-scale streetscape. The brewery operated until 1999. and luxury apartments and condominiums. including renovated office space. and the value of the land has shot up by 488 percent.com Source: US Census Bureau As Portland and other West Coast cities faced economic decline and high unemployment in the wake of the dot. housing options. ECONOMIC INDICATORS: 3-sq mile radius from Brewery Blocks Population Number of households Median household income Per capita income 2000 132. Funding and Economic Impact The total cost of the Brewery Blocks redevelopment was approximately $300 million. Brewery Blocks added to the district’s momentum. the area shed its industrial heritage.395 $34. boutiques. “It’s the largest project we’ve seen in sometime. The city of Portland supplied $8 million: a $6 million loan for the construction of a three-level. The project has generated an increase of over $1. and transit access drew a highly educated.” In the 1980s and 90s. high-income workforce. and a $2 million grant for infrastructure improvements. According to a Transportation Research Board study.771 $29. bringing 1. GBD Architects designed the blocks to balance contemporary structures and amenities with an industrial past.455 2007 (est. 9 . producing a 36:1 private-to-public investment ratio. welcoming art galleries. trendy nightspots. which in turn brought national retailers and helped the project succeed. 1. The Pearl District’s cultural amenities.822 $50. Miller transferred production offsite. and turning warehouses into loft apartments.
5 mil New construction $200 mil Rehab: brewhouse and cellar buildings $55 mil Rehab: Armory building $20 mil TOTAL $300 mil it become a transit-accessible.729 in 2003. divided into five “blocks”. As the project neared completion in spring 2005. three light rail lines.27 mil % 41.899 in 2004. Commercial Development The Brewery Blocks contains approximately 800. as sections of the Brewery Blocks opened.982.74 100 % 30.837.260 96. weekday ridership rose to 7.9 Retailers look to position themselves in this area because of its expanding residential base. the city-owned and operated streetcar circulates around a 4.000 242.000 square feet of office space.000 square feet of commercial space: 300.260 1. Introduced in 2001.000 499.000 1. Approximately 5.000 309. The Figure 3: Portland Streetcar Source: Wikipedia.District is the strongest urban retail market in Portland.000 1. its access to the Portland Streetcar.4 billion in investment around the transit loop.org Transit Portland’s public transportation system includes a bus network. via the Pearl District and downtown.7-mile loop. PROJECT FUNDING: SOURCES AND USES Sources City loan $6 mil City grant $2 mil Commerical bank land or construction loans $72 mil Union pension fund (direct investment) $52 mil Construction loans by Union pension funds $36 mil $53 mil Permanent loans (institutional lenders) Private equity/funding $79 mil TOTAL $300 mil Uses Parking facility $6 mil $2 mil Improvements Land purchase $19. and the Portland Streetcar.000 741. in terms of high demand and low vacancy rates.6 million square feet of commercial development have been built in the Pearl District since the arrival of the Streetcar.21 34.44 100 The streetcar has had a symbiotic relationship with the Brewery Blocks development.33 24. The Portland Streetcar route bisects the Brewery Blocks along 10th and 11th Streets.260 440.000 67. The Streetcar has been credited with leveraging $1. helping 10 . linking the city’s northwest neighborhoods with the south waterfront. and its variety of historic structures coupled with new development. pedestrian-oriented retail and employment center. Weekday ridership grew to 5. When the streetcar started running in 2001.27 mil Investment Distribution Private Public RATIO Source for tables: Gerding/Edlen Development $292 mil $8 mil 36 to 1 528.87 100 29.18 mil 62. and 6.000 square feet of retail and 500. Brewery Blocks was under construction and weekday ridership was 4.200 housing units and 3. ECONOMIC INDICATORS: New and Rehabilitated Space (sq ft) New Construction New residential space New office space New retail space Total new commercial space Total new construction Rehabilitated Space Rehabilitated office space Rehabilitated retail space Total rehabilitated space SUM TOTAL Breakdown of Uses Office space Retail space Residential space Total % 37.26 440.13 69. its relatively affluent population.
600 $169. The development includes 400.913 $41. and most government employees. Both towers are mixed-use structures with ground-level retail space with energy efficient and sustainable design features. Sources: US Census Bureau (www.561 295.534 Change.125 288.278 $40. ‘99-2004 4.portlandmaps. Henry’s 12th Street Tavern. employees of private households.F. and P.146 $40.213.121 526. The North Face. agricultural production employees. Diesel.50% 10% Multnomah County 2000 2003 660.40% 10% Total population Total housing units New units built.690 $1. as well as several law firms. Residential Development Two new residential towers contain a total of 368 residential units.031 9.609 237. Commercial tenants include Tyco Telecom. 2004 Comprehensive Annual Financial Report (www.88% 6. which operates the Blocks’ energy-efficient cooling systems.85% Sources: City of Portland Department of Management and Finance.606 $23.595 4.770.000 square feet of Class A office space.607 $144.2% 1.550.711 $40.204 4. '00-'03 Median household income Per capita income Unemployment Rate *These figures do not include self-employed individuals.com) REGIONAL CONTEXT Portland 2000 2003 529. Figure 4: Site Map of Brewery Blocks 11 .793 $22.307 242.885 $22.320. Despite less than favorable economic conditions in the region. and an Army Corps of Engineers office.org) and City of Portland Maps and Data service (www. Other retail and restaurants include Anthropologie. railroad employees. at the corner of 13th and Burnside.census.557. Chang’s China Bistro.748 Net Gain.214 2004 $71141870 $1. Sur La Table.portlandonline.180 $253.207 $313. eighty-five percent of Brewery Blocks office space was leased within one year. Whole Foods Market. which houses a communication center. at above-market rates. is the project’s retail anchor.486 661.629 7.643 $24. 1999-2004 $56.ECONOMIC INDICATORS: Changes in Property Values and Tax Revenues 1999 Brewery Blocks Assessed Property Values Brewery Blocks Property Tax Revenue City of Portland Property Tax Revenue $14.591. located on Block 1. consulting companies.574.gov) and County Business Patterns (division of the US Census) project has 43 commercial tenants: 25 retailers (including restaurants) and 18 office or servicebased workplaces. and Portland Energy Solutions.
Gerding/Edlen Development Company. Summary Brewery Blocks is emblematic of Portland’s dedication to using smart growth techniques to generate economic development. above-code insulation. a 20. The project uses high-efficiency heating and air-conditioning systems. Portland Development Commission • Beth Scott. LLC • Kay Dannen. 124unit condominium which sold out before the building opened in 2004.4 million. Figure 5: View of the Blocks Source: Gerding/Edlen Adaptive Reuse The adaptive reuse of three historic structures has been one of Brewery Blocks’ finest selling points. According to the Portland Development Commission. the art deco façade of a former Chevrolet dealership. county. supported by the Portland Development Commission and the Portland Family of Funds. Sustainable Design Architects and environmentalists have praised Brewery Blocks’ environmentally conscious design. built in 1929. daylighting. the Armory project. highefficiency windows. drawing millions of dollars in new investment to a transit accessible location. Gragg. was built in 1889 and is listed on the National Register of Historic Places. ‘Fewer Clouds in Pacific Northwest. sales prices ranged from $250. ‘Building Blocks: Urban Conversion. On Block 1. but the anticipated annual savings in energy costs is $58. The brewery has been renovated into a mixed-use structure including Henry’s 12th Street Tavern and 21. a chiller plant. eco-roofs.700. 12 . Sources Interviews Conducted • Bruce Allen. low-flow plumbing. operable windows. a community investment bank.’ Retail Traffic. Joe. has been restored as the exterior of the ground-level Whole Foods Market and upper-level office space. to renovate the structure into a state-of-the-art theatre.2 million in city. In April 2004.200 square feet of office space. 19 May 2005. Portland Center Stage. will create 300 new jobs. 1 August 2002. the Henry. add $80 million to the city’s economy.000-square-foot structure located on Block 3. Portland Streetcar Works Consulted Gose.’ The Oregonian.Source: Gerding/Edlen Development One of the projects. and state tax revenue over the next ten years. purchased the structure and launched a $32. The historic Blitz-Weinhard Brewhouse consumes Block Two. 5 Years Later. and solar panels. The sustainable design features increased the overall cost of the project by about ten percent.9 million capital campaign. is a 15-story. slated to open in the fall of 2006.000 to $1. Randy. an area theater company. Key Features of Brewery Blocks Block Retail and office space 1 Whole Foods on ground floor Preservation of historic art deco façade Chiller plant on roof Block Retail and office space 2 Henry’s 12th Street Tavern Preservation of historic BlitzWeinhard Brewery Block 124-unit residential building (The 3 Henry) Future home of the Portland Center Stage via preservation of Portland Armory building Block Retail and office space 4 Eco-roof Block 244-unit residential building (The 5 Louisa) Eco-roof The Portland Armory. and generate $2.
’ The Portland Tribune.us • Portland Family of Funds www. Senior.portlandarmory. Maria. ‘Chapter 17: Portland’s TODs. Wikepedia: The Portland Streetcar <http://en. LLC www.org/wiki/Portland_Stre etcar> 27 June 2005. Gloria.’ Architecture Week.org • Gerding/Edlen Development Company. 1 May 2004. the old is new again.org • City of Portland Office of Transportation www. Ohland.com • Portland Center Stage in the Pearl Campaign www.com • Portland Armory www.’ Portland Business Journal.’ Retail Traffic. ‘Portland’s Brewery Blocks Wins Award for Sustainable Design. ‘Return of the Trolleys: In transit. 23 December 2004.com • City of Portland www. ‘Brewery Blocks Set to Enter a New Era.’ Daily Journal of Commerce. Websites • Brewery Blocks www. May 2004. 26 October 2001. and Prospects.com/officespace10.pcs. ‘Portland’s Progress. May 2004.portlandtransportation. Stranzl. Brian.How Stuff Works: Office Space <http://money. Stout. 6 June 2005. Heidi J.’ Washington. Transportation Cooperative Research Program Report 102 Transit-Oriented Development in the United States: Experiences. ‘Mixed-Use Brewery Blocks.portlandfunds.pdc. Jeanie. Saporta. Libby. Challenges.’ Atlanta JournalConstitution.htm> 22 June 2005. ‘Looking westward: Oregon trip puts focus on transit. 13 April 2004.org/armory • Portland Development Commission www.portlandonline.org 13 . DC: Federal Transit Administration. Justin. 11 May 2005. Patricia L.ge-dev.breweryblocks.wikipedia.portlandstreetcar.howstuffworks. ‘Project at Former Brewery Site Links City. Kirk.com • Portland Streetcar www.’ Journal of the APA.
linking new businesses and jobs 14 . Maryland Figure 1: Map of Smart Growth Strategy Source: Montgomery County Introduction Silver Spring (pop.TRANSIT-ORIENTED DEVELOPMENT Silver Spring Downtown Redevelopment Silver Spring. one of Washington.575). 35. Anchored by a station that is part of ‘Metro’— the DC region’s subway system — downtown Silver Spring has become a magnet for economic activity. DC’s oldest suburbs. has used transit-oriented development to bring new life to its once-ailing downtown.
085 Recent (2003-2005) 57.619.7% 100% 34% 20% 427.579.000 $40.30% 2. Incentives Manager.580 (2000) Recent % Change 13% 7.660 (2003) $3.425 (1997) $2. DC and other regional destinations.414 489. The arrival of the new town center and its corporate anchors significantly contributed to this growth.554 new jobs in downtown Silver Spring between 2000 and 2005.000 $53. finally landing the 400. CB Richard Ellis 15 .828 (2004) -8.464 (2005) 9. Residents have walking access to a cluster of shops. it was one of the busiest retail markets between Richmond and Baltimore.60% 7. coordinating public and private funding for projects around the transit station. stimulated a surge of new development: between 2000 and 2010.250 (1997) $48.546 $79.080 $610. Throughout the late 1990s and 2000s.712 9. parks.215. Montgomery County planners and private developers targeted four square blocks for downtown development.20% -4% 132% 27% 11% 30% Economic Indicators Office SpaceRentable Building Area Office Vacancy Rate Industrial Vacancy Rate Median Home Price Per Capita Income Median House-hold Income At-place Employment Property Tax Revenue Montgomery County Pre-project (1996-2000) 48. public ($423 million) and private investment ($1.259 15% 20% Source (both tables): MNCPPC.115 % Change 18% 4.464 (1997) 18.7% 4. Silver Spring tried to attract a new mall to stay competitive. Montgomery Co. the DC region experienced significant growth.30% $395.260.000 square-foot City Place Mall in 1992. Between 1988 and 1996 more than 220 businesses left Silver Spring. The initial project.37 billion) will reach $1. and the train station.246 more new jobs in Silver Spring between 2005 and 2010. traffic sped through downtown along six-lane boulevards.0% (1997) 6.2% (1997) $194.8 billion.with a growing residential market.940 (2003) 22. tattoo parlors and pawnshops. “The town center plan led to many new projects. the effects of which were also felt in Silver Spring.403.792.910 (1996) 20.001 $66. Silver Spring’s last retail anchor. Prosperity and Decline Silver Spring originally developed as a stop along the Baltimore & Ohio railroad. a $400 million town center funded with public and private capital.185. did not attract quality anchor stores. Montgomery County forecasts 1. Economic Indicators Office SpaceRentable Building Area Office Vacancy Rate Industrial Vacancy Rate Median Home Price Median Household Income At-place Employment10 Property Tax Revenue Silver Spring Pre-project 6.. “The development is performing way beyond expectations. City Place.360 $733. By 1950.” The arrival of Discovery Communications in 2003 was the driving force behind 1.60% $197.000 (2004) $61.839 7.” said Mel Tull. however. and ultimately failed to help stem the downtown exodus. Downtown decline began when the suburban Wheaton Mall opened in 1960.382.2% (2005) $450.8% (2005) 2. and the retail environment was limited to discount stores. In 1998. Silver Spring Regional Center. Hecht’s. The city was a shell of its former self: vacancy rates increased. moved to Wheaton in the 1980s. offices. which connects Silver Spring to Washington. which ultimately caught the attention of Discovery.
Between 2000 and 2004 the CBD generated over $3. digital media and other forms of the moving image. and other small retail shops.37 billion in new private investment will arrive between 2000 and 2010 – a private to public investment ratio of 7:1. the developer saved several years of holding costs typically endured during the design and approval processes. The project is located within three blocks of the Silver Spring Metro Station. hardware store. a hotel. The AFI Silver Theatre and Cultural Center is a state-of-the-art exhibition. RideOn buses. The proposal was designed to return public investment on the town center within 10 years. As part of the town center project. streetscapes. a public square. Montgomery County entered a partnership with Foulger-Pratt Development to build the 22-acre Downtown Silver Spring town center. Investment in the town center totaled $367 million: the county dedicated $187 million to infrastructure improvements. larger retailers.600-space parking garage. parking garages. or improvements • Green Tape Zone gives downtown projects priority reviews and inspections for permits • Arts and Entertainment District within CBD provides tax credits for construction • Live Near Your Work Program offers $3000 to downtown employees purchasing homes in Silver Spring or neighboring Takoma Park • Montgomery County maintains streetscape. Incentives. and is the country’s preeminent organization dedicated to advancing and preserving the art of film. television. Contracts.580 square feet of renovations of existing buildings. and its retail facades are oriented toward the street to encourage pedestrian traffic. and the fourth stage. After 10 years the city will deed the property to the developer. and Investment Montgomery County assembled the 22 acres of land and negotiated a contract with Foulger-Pratt requiring a long-term commitment to the site.6 million in property tax revenue (a 30% increase). public interest activities. Montgomery County estimates $1. theaters. enhances safety of public areas • County sponsored marketing seminars for local businesses • Incubator Without Walls Program providing business owners with internet and marketing training • County Regional Center advises businesses prior to approval to address anticipated difficulties • Dept. utilities. education and cultural center. Following six months of intensive community meetings. The AFI involvement brought attention and investment to the project.052. Downtown Silver Spring Business Incentives • Access to Metro rail. Construction is in progress on the third stage. and a 3. and taxi stand • CBD Enterprise Zone designation provides tax credits on expansions. Foulger-Pratt attracted businesses that would best serve nearby resident needs – a grocery store. 16 . Because the county assembled the land and retains ownership. of Housing and Community Affairs offers facade/canopy/streetscape improvement grants Downtown Growth: Effects of the Town Center The Town Center project helped stimulate private development throughout downtown Silver Spring. the county rehabilitated and modernized the American Film Institute’s (AFI) historic Silver Theater while preserving its 1938 appearance. a civic building. The town center promised to bring new shops. including roads. and Foulger-Pratt directed an estimated $180 million to build the retail structures. The second stage concentrated on entertainment with the addition of an anchor bookstore. and a parking garage. 160 units of adjacent housing. and townhouses to downtown. renovation. Metro bus. a theater. with connections to the transit station and the existing pedestrian streets and sidewalks. and 1. a civic center and public plaza.Initial Revival: Downtown Silver Spring Town Center In 1998.
The company excluded a cafeteria to encourage employees to patronize downtown establishments. Residential Silver Spring has traditionally maintained a very low residential vacancy rate (about 2 percent). were key to bringing in other businesses. the American Film Institute and Discovery Communications. have come on line since 1998. Pedestrian improvements have helped the once-failing City Place Mall become part of downtown’s success. The industrial vacancy rate fell from 6. Figures 5 & 6: Adaptive Re-Use of Vacant Canada Dry Plant 17 . new construction. it was a boxy. The ground floor. 3. The addition brings total retail square footage in downtown Silver Spring to 4. The main entrance of City Place is oriented toward Town Center. Downtown has added 800. Retailers have added 80 percent more shopping center floor area since 2002 to meet rising demand for retail space. Almost 2. now has a main entrance as well as individual storefronts along Ellsworth Street for retail and restaurant tenants. formerly inaccessible and monolithic.000 feet of office space since 1997 and reduced its office vacancy rate from 18% to 9. and Town Center The project’s corporate anchors. 49 percent of total private investment. located adjacent to the town center and two blocks from the transit station. Tastee Diner.Figures 2.5 percent in 2005.460.700 housing units. Pedestrian Improvements and Transportation While Silver Spring has had a Metro station since 1978.406. has been dedicated to commercial rehabilitation projects. regional mall that was disconnected from the transit station and from the downtown streets. brought 1. Discovery. The American Nurses Association and Ullico Incorporated are Silver Spring’s largest office tenants. Many abandoned offices and factories. and business start-ups. Office and Retail Over $668 million. the CBD required additional housing. With the addition of shopping and employment centers. & 4: (Left to Right) Silver Spring Innovation Center. When City Place was constructed in 1992.500 employees to downtown. the equivalent of $709 million in private investment. and designated 65% of their property as public greenspace. are being converted into housing. it is only recently that development has been oriented around it and made more convenient for pedestrians. like the Canada Dry plant.2 percent in 1997 to 2.8% in 2005.
Sources Interviews Conducted • Bryant Foulger. Silver Spring Regional Center • Mel Tull. and setting the standard for suburbsturned-cities seeking economic development and smart growth.6. office. The SSIC can house 14 or more start-up or early stage information technology businesses. A development above the station will add 420 housing units and a 200-room hotel.64. Margaret Marshall. Silver Spring/Takoma Park Team Leader. 18 .24.354 13. 2005. Maryland National Capital Parks and Planning Commission Works Consulted Andrews. and retail development is planned near the Metro station. The History of Montgomery County. further establishing Silver Spring as a northern transit hub. Silver Spring Metro Station is the busiest WMATA station in Maryland. Foulger-Pratt Development • Gary Stith.078 26% System-wide 1997 2005 % change 503.794 687. New housing.” Planning. Discovery Plaza. Recent transitoriented development has increased average weekday ridership from 10. Public Improvements In addition to improvements around the town center. By 2007. drawing companies. parking garages will be built under the station in addition to a two-deck bus station.579 to 13. Incentives Manager. Montgomery County • Glenn Kreger. Special Assistant to the County Executive. James. “Scaled-down downtown brightens Silver Spring. and the state is helping the county construct a new fire station. Reinventing Silver Spring Implementing an incremental transit-oriented approach revived Silver Spring’s economy and improved the community’s quality of life. Director. employees and residents from within the region and across the country. and the ninth busiest in the Metro system.078 passengers. 1998. V. Creation of the Silver Spring Green Trail will connect the regional Sligo Creek Park Trail with downtown Silver Spring and the Capital Crescent Trail. 8. library. Silver Spring Regional Center • Jerry Pasternack. & 9: (Left to Right) Discovery Communications. enhancing pedestrian and bicycle connections to the transit station. P. The county is also renovating and expanding five parks in Silver Spring. Montgomery County built the Silver Spring Innovation Center (SSIC) to build on the technology jobs at Discovery.Figures 7. I. Coleman. the county dedicated $236 million to downtown public improvement projects. Silver Spring has reinvented itself around the Metro station. district court.299 36% Source: WMATA and pedestrian bridges. and AFI Silver Theater Average Daily Metro Ridership Silver Spring Station 1997 2005 % change 10.
gov/ mcgtmpl.montgomerycountymd.asp Lockwood. Montgomery County.montgomerycountymd.1. 2004.asp The New Downtown. “On Its Way Back. http://marypirg.org/reports/TODreport. V.61.http://www.63.icsc. Karen. 2005. P.asp Finucan. MaryPIRG Foundation.23.32. V. http://www. I.’” Planning.gov/govtmpl. P.1. Ridlington. Tom. 1997.montgomerycountymd. “The Mall Meets Main Street” www.gov/mcgt mpl. “Transit Oriented Development: Strategies to Promote Vibrant Communities.montgomerycountymd.” Planning. Hooker. V. Meredith.” Journal of Housing and Community Dev. 2004.php?region= 19 . Elizabeth.asp ?url=/Content/RSC/Silsprng/welcome.pdf “Silver Spring-A 21st Century Renaissance.org/srch/sct/current/sct0901/inde x. Brad Heavner.asp&v=false Silver Spring Regional Center.asp?url=/content/pio/news/silvers pring/silver. I.2. http://www. I. “Thumbs down on ‘American Dream. Ogorzalek.28. 2004. “Silver Spring Tries Harder.asp?url=/content/rsc/silsprng/Downto wnDevelopment/what1.com/14/ history.” 2003. Charles. P. www.70.
Pennsylvania Figure 1: Revitalized East Carson Street Storefronts Introduction The decline of American manufacturing has left many cities with neighborhoods in transition. With fortunes tied to heavy industry. with residents relocating to suburbs or leaving the area entirely. East Carson was the backbone of South Side residential neighborhood. As the main commercial street.COMMERCIAL CORRIDOR REVITALIZATION East Carson Street Pittsburgh. the population dropped from 676. While the new economy – financial. Between 1950 and 2000. the city of Pittsburgh acutely felt the impact as steel production waned.806 to 334. home to many steel mill employees. Once a prosperous industrial community. healthcare and other service based fields – has helped the region recover.563. a tremendous challenge remains: rebuilding the city’s industrial areas. the South Side fell into physical and 20 .
One hundred and thirty-four businesses received technical assistance to address startup needs and everyday operations.500 new jobs and 225 improved structures. SSLDC improved historic storefronts. attracting small businesses. and coffeehouses. made streetscape improvements. employers. Streetface offers up to half of reconstruction costs up to $52. revitalization efforts resulted in 3.000 sq ft Improved Commercial/ Industrial/ public space 225 structures Public Investment $119 million Private Investment $368 million* Private-Public Investment Ratio 3 to 1 Jobs created/retained 3500** Total New Residential Units 785 * Does not capture private investment in East Carson Street independent of public funding ** South Side Works expected to create an additional 3900 jobs at full build out Source: URA. music venues.” said Arthur Ziegler. and mortgage revenue bonds. CDBG grants. Chairman of the Pittsburgh History and Landmarks Foundation.com The URA has partnered with SSLDC on many new housing projects. Deserted streets and dilapidated storefronts were common. With funds from Pittsburgh’s generous foundations. Over 23 years. The Main Street model promotes self-reliance and the rebuilding of traditional commercial districts through organization. Once an active steel mill. By restoring the buildings. The commercial vacancy rate dropped from 60 percent to 4. Residents from the steel mill days still call the South Side home. Funded primarily by the state. In addition.com Economic Indicators (1985-2005) Businesses Assisted 134 New Construction 1. and brought in new businesses consistent with consumer demand. the groups have developed over 100 market-rate housing units since 1995. the South Side Local Development Company (SSLDC) was created to encourage reinvestment in the corridor and throughout Pittsburgh’s south side. A New Beginning In 1985.economic decline during the 1970s and many of the younger and wealthier residents left. offices. and economic restructuring. Much of the renewed activity is between 10th and 24th Streets. SSLDC teamed with the Urban Redevelopment Authority (URA) to strengthen the surrounding residential neighborhood with new homes and apartments. In 1982.5 percent. SSLDC has leveraged $16 million in funding for housing and business redevelopment in the area. and homes. The South Side neighborhood is now a popular destination for residents. “We saw 18 continuous blocks of Victorian architecture that constituted a major cultural asset and a significant economic asset as well. and visitors. and SSLDC embarked on a program that became a …tremendous success. while sharing the neighborhood with new arrivals who have moved in to enjoy the art galleries. residents. and the corridor needed a lift. A long-term rehabilitation effort has revived East Carson.southsideworks. the Works is now a growing center for employment and a catalyst for area business development. The National Trust for Historic Preservation selected East Carson Street as an Urban Main Street Demonstration Program site. promotion. www. Between 1985 and 2005.100. and promoting the area as the unique shopping experience that it could be.800. Using state funding. which is lined with 18 blocks of Victorian-era storefronts.spotlightonmainstreet. Private developers built 21 . The URA created a Streetface program that supported the renovation of over 225 storefronts along East Carson since 1985. the merchants.11 Figure 2: Ukrainian Presbyterian Church Converted into Halo Restaurant and Night Club Source: http://www. where East Carson meets the newly restored South Side Works. design.
300 (1990) $77.50% (2005) Median Property Value $32. 250 businesses. ft. a 200-room hotel.000 Total 1. New development includes 1. said SSLDC executive director Rick Belloli.193.”12 SSW New Construction (sq. The renewed East Carson corridor boasts 85 restaurants and bars. chief executive of SEEC Inc. a 10-screen movie theater.000 square feet of new construction.700 (2000) Source: URA. an open-air town center. light industrial and public uses.100 (2000) $67. is paying off. Public investment in SSW totaled $103 million.193. drawing $300 million in private investment. and held community meetings to elicit ideas for redevelopment. In all. Located across the river from the Pittsburgh Technology Center. the Pennsylvania Historical Award. commercial. SSLDC.000 (2004) Side Works site Street Level Commercial Vacancy 60% (1985) 4. condos. with 3900 additional jobs coming to South Side Works. revenues will top $8 million.455 (2000) $12.) Commercial 300. UPMC Distribution Center. * Tax revenue only measured for SSW site an additional 330 lofts. property tax revenue in the East Carson Street business district increased by about $1 million. the public sector has directed $119 million to the neighborhood since 1985. formerly tax exempt. and 354 urban living residential units. the URA secured a developer that would execute the community vision – a mix of residential. and the Museum Commission Statewide Historical Presidential Award." The area.000 Industrial 150.717 (1990) $20. US Census Bureau.000 22 .120 (1990) $59.Economic Indicators for South Side and City of Pittsburgh South Side Pittsburgh Historic Figures Recent Figures Historic Figures Recent Figures Per Capita Income $10. and a biomedical incubator called the Life Sciences Center. has “a sense of vitality and beautiful surroundings.500.580 (1990) $18. Private investment reached $368 million. South Side Works – Extending the South Side Revival On the western edge of the South Side neighborhood. and everything’s within walking distance. once development is complete. and six turnof-the-century banks on a two-mile stretch. and the activity has created or retained 3500 jobs. SSW has attracted the University of Pittsburgh Medical Center (UPMC) Sports Medicine Facility.400 expected upon completion Many of the new jobs are in bioengineering and biotechnology.816 (2000) Property Tax Revenue at the South $0* (1985) $3 mil* (2004) $122. now produces $3 million annually in property tax revenues. The investment.. is moving his software development company to the South Side Works for its energy and pedestrian environment. connected to the river with trails and to the surrounding neighborhoods on the existing street grid. with 5. SSW is an attractive site for the expansion.000 Residential 343. He told the New York Times that SEEC needs “an environment where people are excited about being at work and going out after work. Since 1998. Many of these units are former office buildings and churches rehabilitated for residential use. said Tulloch.500 new jobs. The site is home to 1. The URA purchased the site when the plant closed in 1993. East Carson Street has won numerous awards including the Great American Main Street Award.000 Office 400. the 123-acre LTV Steel South Side Works (SSW) site sits between the Monongahela River and East Carson Street. and townhouses. The site. Shane Tulloch.50% (2005) 7. Following the meetings.
org/showcaseProjects_ssWorks3. Pittsburgh Metropolitan Statistical Area Economy. explained “Carson Street was one of those neighborhoods where there was no reason to be there…but now it has a wonderful walkable business district with almost everything you could want. “How the South Side got its Groove Back. http://www.org O’Toole.html 23 . 7/20.htm Schooley. Executive Director.artsnet. Urban Redevelopment Authority of Pittsburgh Works Consulted: Fuoco. and leadership development • Technical assistance to business and property owners attempting to maintain historic and architectural integrity • Streetface Program provides subsidies for business façade improvements • Sign Grant Program offers a 50 percent matching grant up to $500 for signage • Regional marketing of East Carson Street businesses • Neighborhood design standards protect investments • SSLDC advocates community issues (zoning. has overcome economic hardship.org/aaco/economics_pdf s/Chapter%20Three%20Pittsburgh%20MSA %20Economy.Incentives • South Side Local Development Corporation Programs and Services • Neighborhood Assistance Program: Ten-year $2. drug and crime prevention.” Pittsburgh Post Gazette.a sp?navid=2 Holland. www. and a lot of pride from the past.southsidepgh.pdf South Side Local Development Company. helps neighborhoods maintain character. www. Former President of Board of Directors.danielholland. Christine H. Streetface Program Summary. 2002. About the URA Showcase Projects: South Side Works. www. June 14. ura. History of South Sidehttp://www. a high rate of ownership. “Historic Preservation of Pittsburgh’s Neighborhood Business Districts. job development. “URA’s façade program. Director Business Development Center. housing.html National Trust for Historic Preservation Main Street Program. transportation.pdf Urban Redevelopment Authority of Pittsburgh. Dan. Michael A. 2005.5 million state funded initiative designed to fund programs in education. capitalizing on its compact urban design and charming Victorian features. South Side Local Development Company • Robert Rubinstein.” The National Main Street Center.ura. www.com/about.mainstreet. As Beth Marcello. South Side Local Development Company • Beth Marcello.org/pdfs/mainstreets/Streetface.) Back in Business The South Side. regional development. 2002. “Arts and Science Remake the Steel City” New York Times.com/mainstreet. 7/7. human services. former SSLDC Board of Directors President. Tim. Urban Redevelopment Authority of Pittsburgh. etc.com/SSLDC/index.southsidepittsburgh. ‘Streetface’.” Biz Journals.” Distribution of Public and Private Investment (1985-2005) Commercial Corridor $16mil SSW $103mil Public Total $119 mil Commercial Corridor $68 mil SSW $300 mil Private Total $368 mil TOTAL $487 mil Source: URA Sources Interviews Conducted: • Rick Belloli. 1998.
towns and cities are seeing the value in having a strong and vibrant Main Street. are a hallmark of smart growth in small and large towns alike. Revitalization of 24 .COMMERCIAL CORRIDOR REVITALIZATION Main Street Program Burlington.com Introduction Traditional Main Street commercial corridors. allowing people to walk. However. or drive to reach their destinations. and housing. where a variety of daily needs are close at hand. regional retail centers grew. As the movement toward more auto-oriented. restaurants. take transit. Iowa Figure 1: Revitalized business district Source: burlingtoniowa. offices. These corridors were originally designed with a mix of shops. many of these commercial corridors suffered. ride their bikes.
000 City of Burlington Sponsorship.839) was once a prosperous transportation and manufacturing hub. adopted in communities across the country.151 Total private investments in downtown property acquisition $8.849.9% Source: Main Street Iowa these areas is reaffirming community identity and delivering investment. Burlington (pop: 26. Downtown Partners. Its location on the Mississippi River and major railroad routes made the city a ‘Gateway to the West. Inc. were ineffective. Iowa has reestablished its downtown as the city’s primary activity center.807. Inc. Since the Main Street program began in 1986. and tourism dollars. The private sector has invested $33 million in downtown projects. a non-profit $15.005 Percent increase in property values (1986-2004) 23.7% Increase in property tax revenues (1986-2004) $1. In 2004. and highway construction led to the demolition of nearly one hundred businesses and historic homes. Downtown Partners. (DPI). and expansions 212 Net gain in new jobs 500 Building rehabilitations 396 Buildings sold 145 Total private investments in rehabilitation $28. an honor given to five communities each year for excellence in preservation-based revitalization. Downtown businesses could not compete with suburban shopping centers. including the restoration of 396 historic buildings. Inc. The Main Street program. but faltered after World War II. 1986 – 2005* Net gain in business starts. the central business district has attracted scores of new businesses and 500 new jobs. relocations. storefront vacancy rates exceeded 80 percent. Burlington’s progress has drawn national acclaim.930.487 Percent increase in property tax revenues (1986-2004) 33. Over the past 20 years. Burlington earned the National Trust for Historic Preservation’s Great American Main Street Award. jobs.000 Burlington in Context Founded in 1833. for instance – bring economic development and community activity back to downtown.335. Downtown Partners. many downtown facades were covered by aluminum siding. Annual Budget Source Amount Self-supporting municipal improvement district contribution $64.’ rivaling St Louis Figure 2: View of downtown Burlington Photo courtesy of DPI 25 .000 $200.573 Increase in property values (1986-2004) $117. By the 1980s. including a pedestrian mall on Jefferson Street. fundraising. is designed to gradually – over 10 to 20 years. Burlington maintained a healthy economy into the twentieth century.ECONOMIC INDICATORS: Downtown Burlington. The Iowa Department of Economic Development and the National Trust for Historic Preservation designated downtown Burlington as a National Main Street Community in 1986. private donations TOTAL Source: DPI during the nineteenth century.000 $121. Attempts at urban renewal in the 1960s and 1970s. Burlington.
Historic landmarks have become new businesses. Property owners within the district contribute three dollars per one $1. and organizes events that bring customers to local businesses. After redevelopment. creating a more business and people-friendly environment downtown. the city collected $7. Supported by $1. the tax collection jumped to $115. and retail and restaurant locations. strong volunteer participation. or expansions and 500 new jobs have come to downtown. accounting for 87 percent of all private investment going into downtown. abandoned or otherwise off the tax rolls.000 annual budget. residential spaces.000 of taxable valuation. Built in 1911. including $29 million toward rehabilitation projects. Figure 4: Newly renovated Hotel Burlington Photo: DPI Figure 3: This map outlines the 32-block municipal improvement district. Economic Growth The Main Street Program has facilitated significant changes during its nearly 20 years in operation. It promotes the downtown as a place to do business and hold events.9 percent. and recruits new businesses. including sidewalk renovations. markets downtown properties. In return. including 75 units of mixed-income housing for older residents. operating with several staff. It borders the Mississippi River. Adaptive Reuse Rehabilitation of historic buildings has been a key driver for revitalization.480 (1998) in property taxes on the hotel property. The city and DPI have collaborated on a number of physical improvements over the years. Two hundred and twelve business starts. The private sector has invested $33 million in downtown since 1986. regulatory and networking services for existing businesses. provides training and resources. and a $200. The city’s property tax revenue has increased 33. at right. The pedestrian mall was removed in favor of upgraded street features. the ten-story structure has been restored as a residential development. operates the Main Street program in Burlington. The hotel was closed by the time the Main Street program arrived in the 1980s. RiverPark Place is a mixed-use development in a former hospital building overlooking the riverfront. relocations. Map courtesy of DPI DPI is a small organization. historic light post installation and on-street parking in front of merchant entryways. with much of the increase generated from properties previously vacant. The structure.2 million in funds from the city’s tax increment financing program. Hotel Burlington was once among the Midwest’s top hotels. DPI advocates for downtown investment.organization. provides design. Prior to redevelopment.296 (2003). completed in 2003 with the help of a $1 million Chamber of Commerce 26 . It is funded in part by a 32-block municipal improvement district established by the city.
450 Downtown commercial vacancy rate 1986 16. These figures are more likely linked to regional trends and macroeconomic conditions grant. New projects are returning old buildings to productive use. Special Events and Attractions A regular series of special events has helped bring people downtown and encouraged support for local businesses. the former retail anchor of downtown Burlington. such as the historic Snake Alley. The building is now a $2 million mixed-use development that contains retail establishments. sidewalk sales in July. and a holiday open house in November.5% Source: City of Burlington. Permanent attractions. houses local businesses. bring in additional Figure 5: Snake Alley map Source: www.000 to $65. the properties account for $16.494 in taxes from the three properties at Jefferson and Second Street.com retail and tourism dollars.792 (2003) in annual property taxes. and draws up to 1. and an upscale restaurant. the company closed in 1997. in which retailers open up their storefront window space for local non-profits. the city estimates that it will collect between $80. DPI promotes a spring open house in March. Sources Interviews Conducted: • Janine Clover.000 each year.69 million 2004 $7. RiverPark generated approximately $60. while returning thousands of dollars to the tax rolls.500 customers on its busiest nights. In 1998.ECONOMIC INDICATORS: Burlington Before and After Historic Figures Recent Figures City per capita income* 1980 $10. Its historic features. Schramm’s Corner is located in the historic Schramm’s Department Store. US Census *Income and unemployment figures cannot be directly attributed to the Main Street program. • Dennis Hinkle.snakealley. customer appreciation days in April. Downtown Partners. Executive Director. Small Business Development Center • Val Giannettino.93 million Downtown property tax revenue 1986 $5. With the Main Street program as a guiding force. and Burlington’s business incubation center.0% 2004 6.30 million City unemployment rate* 1986 9.44 million 2003 $262. the city collected $4. or other businesses to decorate. condominiums. upscale condominiums and apartments.000 and $90.000 in property tax revenues during its years as a hospital building. Snake Alley is a winding stretch of North Sixth Street. The Annual Living Windows event.0% Downtown taxable property value 1986 $497. Inc. With the new project online. Grow Greater Burlington 27 . downtown Burlington has steadily turned around. pedestrian-scale and community gathering places have made downtown an attractive location for business. extended opening hours in the fall. Vice-President of Economic Development. marketed as ‘the most crookedest street in the world. Redeveloped as Schramm’s Corner. draws visitors from all over southeast Iowa each December. Trick-or-Treating on Halloween. The Riverfront Farmers Market takes place on the waterfront on Thursday evenings in summer. families.62 million City retail sales 1988 $157.’ It is one of Burlington’s most famous landmarks.117 2000 $19.12 million 2004 $614.8% 2004 7. Director.
Ron.census. ‘Downtown Partners Faces Staff Cuts.com • Iowa Department of Economic Development www.com • U. Main Street Iowa Doug Worden. Ron. Quirk. Ron.’ The Burlington Hawk Eye. ‘Main Street Honors Breuck. 25 March 2005 Fields.snakealley.com • City of Burlington website www.burlingtoniowa. Rex L. James Jr.ia. ‘Boat Boosts Project.’ The Burlington Hawk Eye.downtownpartnersinc. www.org • Snake Alley Website www. 2 March 2005. Census Bureau www.org • Downtown Partners.visit. 9 May 2005. 23 October 2003. ‘Developer Says Complex Will Work Only if it Offers Something Different. 30 January 2005.org • National Main Street Center www.S.growburlington. Troute. ‘Main Street Gets Expected Nod.seirpc.gov 28 . Quirk.us • Burlington-West Burlington Area Chamber of Commerce www.burlington. Websites: • Burlington Convention and Tourism Bureau www.com • Southeastern Iowa Regional Planning Commission www. Former Executive Director of Main Street Burlington Jane Seaton. James Jr.’ The Burlington Hawk Eye.iowalifechanging.com • Iowa Small Business Development Centers www. 20 February 2005.’ The Burlington Hawk Eye. 15 May 2004.iowasbdc. Ron. Fields.mainstreet.com • The Hawk Eye Newspaper www. 6 March 2005. ‘Giannettino’s Energy Spurs DPI Success.’ The Burlington Hawk Eye. Fields.’ The Burlington Hawk Eye.’ The Burlington Hawk Eye.’ The Burlington Hawk Eye.• • • • Janet McCannon. Inc.thehawkeye. ‘Housing Funds Coming. ‘Farmers Market a Big Hit with Area Producers. City of Burlington Finance Officer Des Moines County Treasurer’s Office Works Consulted: Fields. Miller. Randy.
businesses and residents. Assembling contiguous parcels of underutilized. $500 million mixed-use district adjacent to downtown.TARGETED AREA REDEVELOPMENT Arena District Columbus. Area redevelopment creates a marketable real estate opportunity. an area redevelopment initiative produced the Arena District. OH Introduction Parcel-by-parcel redevelopment can be a slow process and a tough sell. Existing infrastructure. and access to transit are factors that make urban land assembly projects attractive to developers. a 75-acre. as well as an opportunity for smart growth. proximity to employment. vacant. In Columbus. or blighted property for redevelopment as a district can accelerate and encourage investment in urban areas. 29 .
the district features wide sidewalks and cozy alleyways to encourage pedestrian traffic between residential. and an additional $19 million on roads. Bricked alleyways link the arena with nearby restaurants. “The Arena District has had a significant impact on the revitalization of downtown Columbus. and Incentives NRI invested $450 million in construction costs and land acquisition.” said Brian J.” The authority subsequently leased the land to NRI provided that the company would construct an arena on the grounds. Working with NRI. The Dispatch Printing Company. infrastructure. a six-acre parcel owned by American Electric Power (AEP). NRI financed construction of the arena with assurances that the National Hockey League would locate a franchise team in Columbus. offices. and the plan establishes seamless connections between the district and downtown. the Arena District has introduced 3. targeting a 23-acre tract of city-owned land.The district’s centerpiece is the 18. and utilities in adjacent areas. owners of Columbus’ largest newspaper. And we've accomplished that. to create a master plan for the district around the arena. and a handful of properties owned by surface parking lot operators. Oncebarren real estate is now a center for round-theclock activity. bringing the first new multi-use projects to the central business district in many years. including $100 million for arena construction. Our entertainment venues draw large crowds. The city agreed to sell its property to NRI for $11. “Our goal has been to create a new and exciting place for people who want to be downtown. The Downtown Commission of the Columbus Department of Development approved the plan. 30 . The city put $16 million toward road improvements and infrastructure and utility development in the district.600 jobs and 40 new or relocated businesses to the heart of Columbus. retail.000-seat Nationwide Arena. Figure 2: Nationwide Arena Since its creation in 2000. president of Nationwide Realty Investors (NRI). which hosts the NHL’s Columbus Blue Jackets and other big-ticket events throughout the year.7 million. and residential uses. and office spaces. a firm specializing in urban planning and design. and the residential component is a success. office space has filled up. Costs. Project Development For years. the district has a private to public investment ratio of over 14 to one. Ellis. contributed $10 million and private investors contributed $40 million (through the purchase of box seats and other forms of sponsorship) toward arena construction. Funding. Figure 1: View of the Arena District $11 million. MSI laid out pedestrian ways and design elements that give the district its charm and identity. and AEP sold its site for NRI retained MSI. surface parking lots and a crumbling state penitentiary dominated the project area. The Franklin County Convention Facilities Authority used its condemnation powers to acquire the land being used for parking lots. which NRI used to guide project implementation. NRI initiated the revitalization process. Designed on a conventional street grid. In total.
provides a public gathering space. which will be repaid by the property tax increment generated over 30 years.2 million visitors attended 203 events at the arena including music performances as well as hockey games. a 12-acre green space along the Scioto River. Under the TIF.7 million $11 million $150 million $327. The district boasts a ‘restaurant row’. The district is running behind its bond repayment obligations because it is limited in the amount of increment it can capture. The first. The Arena District benefits from two downtown tax incentive programs.75 million people visit the district’s restaurants and entertainment venues each year. NRI Sources Nationwide Realty Dispatch Printing Co.000 and 1.The city is using tax increment financing (TIF) to support the district’s capital improvements.000-square foot Nationwide Arena opened in September 2000. A three-acre park. 1. two parking garages (1. introduced in 2002. each includes Class A office space and ground floor retail.600 40 $4. and government offices.000 fans. Other features include an 8-screen movie theatre. The district is within walking distance of other downtown Columbus attractions. Economic Impact Three thousand six hundred employees work in the Arena District’s 40 businesses.4 million NRI has leased approximately 85 percent of the 1. Uses $11. Before development of the Arena District in 1998. the Short North. an arts and entertainment district. creative companies. a stateof-the-art vision care center. which include financial consultants. In its first year. and North Bank Park.4 million.2 million sq ft 300.400 spaces). allows a 10-year property tax break for new residential projects in the downtown. Seven years later.000 sq ft 1. Commercial Development The 685. property tax collection exceeds $4.500-space expansion to an existing parking garage. The Arena District also houses the PromoWest Pavilion.5 million sq ft 350 units $500 million $35 million 14:1 3. and a 1. the project area was generating nearly zero property tax revenue. which will be reimbursed as the district matures. Ten office buildings have been completed. which provides a yearly payment to employers who bring new office jobs downtown. only 27 percent of the increment goes to the district. The city sold over $30 million in bonds. an historic public market. The second is the Downtown Office Incentive Program. an indoor/outdoor concert venue that can hold up to 5. while the remainder is directed to the city school district.3 million $500 million Land acquisition (purchase of 23 acres owned by city) Land acquisition (purchase of 6 acres owned by AEP) Arena construction All other construction TOTAL Source: Nationwide Realty Investors 31 .000-square foot fitness facility. Economic Indicators (1998-2005) Private investment Public investment Private-public investment ratio Jobs created New or relocated businesses Increase in property tax revenue NEW CONSTRUCTION Office space Retail space TOTAL COMMERCIAL SPACE TOTAL RESIDENTIAL SPACE Source: Nationwide Realty Investor 1. a 10. law firms and legal services. restaurants. including the Columbus Convention Center. McFerson Commons. featuring a variety of restaurants and bars that are busy throughout the year. while bicycle trails connect the Arena District with other green spaces in the Columbus area. NRI is covering the shortfall through annual payments of $1 million. The payment is equal to 50 percent of the income tax withholding from each new job for a period of between one and five years.5 million square feet planned for commercial development. Private Investors TOTAL $450 million $10 million $40 million $500 million estimates that 2. the North Market.
479 1990 $10.S.094 1998 $34. 32 . ‘Nationwide Arena District: A New Brick-Paved Urban Village.com • City of Columbus: www.604 $9. 17 June 2005. Census Bureau: www. is a magnet for community events and economic growth.550 Source: Columbus INFObase. The district.305 2003 $18. www. the Arena District is located in planning area 18. abandoned real estate into Columbus’ most popular sports and entertainment district.000 square feet of ground-level retail and a three-level.census.columbusinfobase. The Arena District is located in the northwest quadrant.’ Columbus Blue Jackets.columbusinfobase.546 $34. * It divides the city into four sections using the major highways I-70 and I-71. Columbus Planning Division (www.DEMOGRAPHIC AND ECONOMIC PROFILE Northwest Quadrant Trends* Population Median Household Income Per Capita Income Planning Area 18: Downtown Area ** Median Household Income Per Capita Income City of Columbus Median Household Income Per Capita Income 1990 223.’ The Columbus Dispatch. a community information resource maintained by the Neighborhood Planning Section.org). $35 million apartment project called Arena Crossing. Now.cityofcolumbus. NRI • Chris Hermann.arena-district. Figure 3: Residential Units at Arena Crossing Summary The Arena District turned formerly underutilized. Director of Marketing.gobrick.397 2003 242.org • U.791 $17.org • Downtown Columbus http://downtowncolumbus.607 1998 $15. office workers. MSI Websites • Arena District: www. Burnham Square. Doug.odod. the downtown area.301 $30. Caruso. a 98-unit condominium project opened in December 2005. and Beyond.us • Columbus Planning Department INFObase: www.com.139 $17.com/pavers.state.gov Works Consulted “The Arena District Then. Residential Development NRI has opened a 252-unit. NRI plans to add 200 more residential units to the district in the future. Shoppers.oh. ** The city is further divided into 30 planning areas.651 $13. 400-space parking facility.bluejackets. while big crowds pour in for hockey games and rock concerts. www.531 $22. and restaurant-goers provide a daily stream of pedestrian activity. now downtown’s northern anchor.151 1998 235.132 $20. Sources All photos courtesy of Nationwide Realty Investors Interviews Conducted • Michelle Chippas. It is a two-building complex with 16.’ The Brick Industry Association.984 2003 $40. ‘Arena District Seen as Catalyst for Downtown Development. 3 September 2000.042 $21.976 $13.279 $13.000 1990 $26.com/ • Ohio Department of Development www.636 $12.
33 . October 2003. Mike. 1 October 2002. Columbus – real estate market. Ohio. Stammen. Weiker. ‘Mixed-Use Project in Downtown Columbus.’ the Columbus Dispatch.’ Primedia Business Magazine. 28 June 2005.’ the Columbus Dispatch. ‘Nationwide Arena: Year One.Pramik. 10 September 2001. Barnet D.’ Heartland Real Estate Business. Wolf. 12 July 2003. ‘Nationwide Offered Incentives by State. Columbus. 19 February 2004.’ the Columbus Dispatch. Ohio. Wright. ‘Arena-Area Condos Planned. ‘150 Downtown Jobs.’ The Columbus Dispatch. Randall. Steve. Ken. to Reduce Car Dependency. ‘Hello. Jim. Shearin.
were once the center of retail activity and a significant revenue-generating asset for cities. Colorado Introduction Cities throughout the United States are grappling with how best to redevelop abandoned commercial sites where their local malls once stood. commercial disinvestment.LAND ASSEMBLY and TARGETED AREA REDEVELOPMENT Belmar Lakewood. vacancy.200 greyfields around the country and the average site at around 45 acres13. known as greyfields. 34 . and job and revenue loss. With approximately 1. These sites. these sites account for a significant source of abandonment.
210. As of early 2006. The Lakewood Reinvestment Authority (LRA) became the public partner for financing the redevelopment. like similar newer retail centers and providing less tax revenue to the city. a greyfield site gave the city the opportunity to create a downtown it never had. Initially.4 million square foot Villa Italia Mall enjoyed over 35 years as the commercial and social center of Lakewood. office space. Denver-based Continuum Partners. In the late 1990s. Villa Italia began declining in the 1990s. the city underwent an extensive public process. the regional mall held the distinction of being the largest indoor mall between Chicago and the West Coast. LLC. including a Whole Foods Figure 1: Aerial view of former Villa Italia Mall malls of its size and generation. Belmar has emerged as a vibrant pedestrian-oriented new city center. 12 loft condominiums. establishing a citizens advisory committee and inviting members of the community to comment on potential redevelopment options. Belmar already boasted over 60 new businesses. entertainment. losing sales to 35 . 132 townhomes.000 square feet of retail. Figure 2: Intersection of Alaska and Teller Streets committee members favored only one-story retail establishments. When opened in 1966. The new downtown district has 650. Project Development The first phase of Belmar opened in May 2004. The Belmar development received the National Award for Smart Growth Achievement from the Environmental Protection Agency in 2005 and the Economic Development Partnership Award from the International Economic Development Council in 2004. However. the city partnered with a developer known for its ability to create such attractive mixed-use communities. LLC began redeveloping the declining Villa Italia Mall into Belmar. Over the course of a year in 2000-2001. That mindset changed after the city distributed disposable cameras and asked members to take pictures of places where they would want to shop and congregate. Colorado suburb of Lakewood. pedestrian-friendly development with a distinctive sense of place.In the Denver. Development History The 1. With the $243 million first phase completed in 2004. mixed-use. the Lakewood Reinvestment Authority and developer Continuum Partners. Several years after an attempt to revive the mall failed in the mid 1990s. In 1999. and three large public parking garages. They came back with photos of downtown Boulder and Denver’s LoDo (Lower Downtown) – a three-four story. and homes. The City of Lakewood and Continuum have been recognized nationally for their successful development. Lakewood City officials decided to intervene. 109 apartment units.5 million square feet of development.000 square feet of office space. Continuum proposed reinserting a 22 city-block grid with 3. a mixed-use district of 22 city blocks with stores.
000.000 square feet of retail 16 screen theatre Parking: 2. residences 1. Cost. 3.000. Funding.000. public improvement fees.000 $63. office.300 residential units 800. operation.000 $120.1 million square feet of retail 16 screen theatre 250 room full service hotel Parking: 6. In 2003.000 are expected to be working in the district by the time it is completed in 2010. office.000.000 supermarket.000 $243.000 $58. tax increment financing. and artist studios Complete Build-Out (expected 2010) 22 blocks of retail. stores. launched in the fall of 2005. Phase II of Belmar. art pieces placed throughout project Sources and Uses of Funds: Phase I SOURCES Continuum (Equity) Brownfields Loan Metro District Bonds Bank Loan Total Sources Phase I USES Site Acquisition/Infrastructure Dev. Parking Facilities Vertical Construction Total Uses Buildout $40.000 street/ surface spaces 2 acre park. Continuum invested close to $200 million for Phase I of Belmar. including art gallery. Economic Impact Close to 3. offices. stores. approved by the City Council. 36 .000 square feet of office 1.000 $680. The district structure is used to issue bonds to fund capital improvements and to impose mill levies on commercial and residential properties in Belmar.000 $243.000.000 same time be competitive with other retailers in the region. residences 253 residential units 210.000 people work in Belmar’s over 60 offices.000 $875.000. The residential and retail components will be completed in 2010. major public plaza Art in Public Places.000 $143.000 structured spaces.000. full build-out may take longer. and cultural venues. With consent of the city.000.Phase I: Opened May 2004 8 blocks of retail.000. will offer more homes. art galleries and studios.000 $27. They set up a complex public-private financing structure that included sales tax sharing.000.000. artist studios. including art gallery.000 street/surface spaces 2 acre park.000 $132. a Cineplex theatre.000 $3.000. restaurants.000. and entertainment and cultural venues. Continuum established three Metropolitan Districts.000 $131. entertainment. for the financing. major public plaza Art in Public Places.000. and maintenance of the public improvements on the site.000. the developer imposed a 2.000 $875. Parking Facilities Vertical Construction Total Uses Phase I SOURCES Private Investment Metro District Bonds Other Total Sources Buildout USES Site Acquisition/Infrastructure Dev. and Incentives The city and Continuum formed a strong partnership with a shared vision of long-term value and growth.000.000 $2.000 Sources and Uses of Funds: Buildout (2007) $752. The city waived half of its two percent sales tax on the site to enable retailers to charge the PIF and at the $85. The total cost of the project is estimated at around $875 million. The PIF revenue and incremental property taxes will flow to the Metro District for repaying the bonds.5 percent Public Improvement Fee14 on all retail sales on the site.000 square feet of office 650.000. and nine acres of public open space.000 structured spaces. More than 7. 2. and cost sharing for services. the Metropolitan District issued revenue bonds to help fund Phase I improvements. entertainment.
and down to $400.196. and a full service 250room hotel.000 in 2002. Figure 3: Shops on South Teller Street. Belmar also has a variety of housing options. the city collected $2. town homes. The Lab. and a 15.855.392.056.095. almost 100 percent of the office space has been leased. that figure is projected to increase. lofts.475. With the completion of Phase I there are 241 residential units. As the project progresses.400 $301.848.000 3750 $78. Since its opening. The public space and parks serve as community gathering spots. 800. and other community cultural and educational events. 2004 IEDC Award Application When the Villa Italia Mall was at its peak in the early to mid 1990s. With a strong public-private development partnership and a clear community vision. condominiums. At build-out.727.528 $21.000 square feet of class A office space. Salary $60.000 square foot contemporary Art Institute.028 $69. commercial. an annual Italian heritage festival. the City of Lakewood was able to attract a high caliber of commercial tenants that the site had not seen in over twenty years. Residential Development Integrated with its retail. Many of the residential units are above retail. Belmar luxury apartments. and at build-out that number will reach 1. and art galleries have already opened. it generated between $3 to $4 million in property tax revenue. Belmar hosts a monthly Parisian Street fair. cultural. as 37 . property tax revenue dropped to around $1 million in 2000. As the mall was declining.375 $101. the new downtown district will have one million square feet of retail. will open during Phase II. a weekly produce market. and civic amenities draw residents and visitors to the district.000 $5. and entertainment uses.NEW JOBS Office Retail/Restaurants Site Management Total Phase 1 Jobs 900 2000 75 2975 Avg. A movie theater. and live-work units.575 Total Build Total Economic Out Jobs (2010) Impact 3500 $211.300. Art.15 With the creation of Belmar.4 million in property tax revenue in 2005. Economic Indicators: Belmar New businesses (2005) Jobs created (2005) New residential units (2005) Private investment (build-out) Public investment (build-out) Private-to-public investment ratio Increase in property tax revenue: 20022005 Increase in percent property tax: 20022005 62 3000 241 $752 m $120 m 6:1 ~ $2 m ~ 500% Moving Forward The City of Lakewood saw opportunity in Villa Italia’s decline and transformed their community.750 Source: City of Lakewood and Continuum Partners. the city created an urban destination for the Denver Metro west side. Residential options include urban row homes.750 7. bowling alley.000 150 $10. Some of the housing in Phase II will be developed in conjunction with the Lakewood Housing Authority to accommodate residents at income levels of 60 to 80 percent of the area median.285 Yr 1 Economic Impact $54. Commercial Development With the rise of Belmar.200 $42.
” Shopping Centers Today.” Denver Post.Regeneration.lwvjeffco. Charley. Greyfields: The New Horizon for Infill and Higher Density 38 . International Council of Shopping Centers. Kentucky. public spaces. 2004 Able. “Art Scene Takes Quantum Leap with The Lab. May 19. Redevelopment Specialist. May 15. Denver Post.htm Lakewood Fiscal Fact. Lakewood Reinvestment Authority • Larry Dorr. Principal. Belmar is becoming the economic engine and community center the city envisioned. 2004. Chamberland. Mark P.org/salestax. 1/11/02 MacMillan. art and culture.org Belmar Redevelopment Website: www. City of Lakewood • Tom Gougon. “Belmar Helps Revive Center of Lakewood. With new stores. September 2005: www. Center for Environmental Policy and Management. Colorado. 2005 Entry Package Built Projects (Belmar Application) 2004 IEDC Economic Development Awards Application. Mall Demolition to Begin.com Continuum Partners LLC: www. Teresa. Finance Director. businesses. Colorado.com Jefferson County Assessor’s Office: http://jeffco. University of Louisville. entertainment venues.us/assessor/index. 2004 Chilton. submitted by City of Lakewood Hazel.html Figure 4: Holiday Season in Belmar 2004-2005 well as a new model for successful greyfields redevelopment. Kenneth M.belmarcolorado. Continuum Partners LLC Works Consulted: EPA National Award for Smart Growth Achievement. “Residents Optimistic About Belmar.lakewood.continuumpartners.” Bear Creek Sentinel.” Rocky Mountain News. Sources Photos courtesy of Continuum Partners LLC Interviews Conducted: • Erica Adshead. Lakewood. Debra. Couch. September. 5/16/04 Websites: City of Lakewood: www. Kyle. “Lakewood Unveils New Downtown.
Indiana Figure 1: Fountain Square Cultural District logo Source: Indianapolis Cultural Development Commission Introduction Fountain Square. the once distressed neighborhood is now a thriving live-work community for artists. Through community-based redevelopment and continued revitalization.ARTS AND ENTERTAINMENT DISTRICT Fountain Square Indianapolis. 39 . a historic commercial and residential neighborhood located southeast of downtown Indianapolis. was the city’s first theatre district. But suburban flight and disinvestment beginning in the 1950s turned the once vibrant neighborhood into an economically challenged community.
a non-profit community development corporation. a wide range of retail. SEND has also worked to upgrade public infrastructure and amenities including a $5.000 square feet of commercial space and two arts centers. There were multiple movie and vaudeville theaters. Although the substantial success of the revitalization of downtown Indianapolis had some effect on Fountain Square.47% $5. It provides a unified approach to developing the commercial corridor that now comprises more than 300. hundreds of businesses.27 1995 40.The Southeast Side Neighborhood Development (SEND). Recovery SEND worked incrementally on individual projects in the commercial district for more than 20 years. Increased investment in the commercial district has attracted investment in surrounding residential areas. has fostered the revitalization of Fountain Square and its surrounding residential neighborhood. corporate support. it was mostly SEND’s long-term commitment that encouraged confidence in program sponsors. FOUNTAIN SQUARE* % Change in Total Property Property Tax Tax Value. Suburban flight and disinvestment compounded the process. with both longtime residents and new homeowners participating in improving the quality of area homes.859. construction of I-65 cut the unified Southeast into isolated pockets and destroyed thousands of homes. All of the neighborhood theaters closed.08 2005 *Tables prepared by IEDC include 136 out of 150 parcels for which 1995 and 2005 information was available from census tracts 3559 and 3571.” said SEND Project Manager Paul Baumgarten. Figure 3: Fountain Block Senior Citizen Housing and Fountain Square Branch Library Photo: Paul Baumgarten Figure 2: Fountain Block and Fountain Square Theater Building from the roof of the Murphy Art Center Photo: Dale Bernstein Early Fountain Square From 1910 to 1960. churches. and there was a turnover in the type of businesses housed in the original commercial buildings. These tracts include significant portions of the Fountain Square Cultural District. independent banks. with substantial investment from the city.5 million library.186. but as more and more people have positive experiences in Fountain 40 . Value 1995-2005 $3. Fountain Square was a neighborhood destination and the city’s downtown for the Southside.695. charitable organizations. Economic hardship in the 1950s eclipsed Fountain Square's long-standing role as the Southside's commercial district. SEND is still working to diminish the past negative perceptions of people from outside of the neighborhood. PROPERTY TAX VALUE. and social centers serving a range of ethnicities.5 million community center and a $2. and many schools and churches. SEND’s effort. and individual donations. “If you look at where Fountain Square was twenty years ago.16 In the 1970s. the improvement is remarkable. is the lead organization for the Fountain Square Cultural District.033. We’ve seen many successes as we steadily revitalize the neighborhood’s commercial center. Many businesses closed and were replaced by lower quality ones.
fundraisers and thousands of hours of volunteer support further supplemented monetary contributions. an adaptive-reuse 60. became the primary contact point for visitors to the cultural district. Project funding sources include local. and educational events. 1990-2000 Fountain Square Population Median Household Income Per Capita Income Surrounding Districts Indianapolis In 2001. Figure 4: Murphy Arts Center. the Fountain Block Building. now serves as 36 live-work lofts for low-income artists. A mix of federal tax credits.17 The Murphy Art Center and Fountain Square Theatre Building were developed through a partnership between private investors. 3571.7% 67.Square. grants. Significant in-kind contributions. SEND and the city energized the revitalization of Fountain Square by redeveloping large. 3572 SEND restored an abandoned 1902 commercial building. bank investments.5% 54% 6. include upgrades to the streetscape and fountain. -3. currently in the planning stages. In 2004. prominent buildings that served as catalysts for additional reinvestment and improvement. state. the Wheeler redevelopment put Fountain Square on the map as a serious arts community. SEND was the co-developer with a longtime neighborhood resident to restore a largely vacant 1920s movie building into an entertainment complex. and individual contributions. 3570.000 square foot abandoned industrial building. The apartments have brought extended hours of activity to the commercial area. decorative Terra Cotta Photo: Paul Baumgarten The four catalyst projects cost a total $9. Neighborhood Change.8% 67. SEND. developing additional public space. corporate donations.000 square foot retail complex. Long-term projects. The building hosts a theater with cultural.5% 41. and special loans paid for the $4.7% Census Tracts 3559. with 22 upper-floor apartments and a public library branch. 3557. Figure 5: A Fountain Square art gallery Photo: SEND 41 . visitation and interest in commercial and residential real estate has increased. community.5% 82. with 32 studios on the second floor offering affordable workspace for artists. and arts program space for the University of Indianapolis. charitable foundations. The Wheeler Arts Community. the Murphy Art Center. 3562. and the Local Initiatives Support Corporation (LISC). and federal governments. and creating gateways and directional signs that visually define Fountain Square as a unique neighborhood of Indianapolis.1% 52.5 million. The project created six business storefronts primarily occupied by arts-related businesses and galleries. was developed in partnership with two artists. For the Fountain Square Theater Building.4 million redevelopment. A previously abandoned 45. completed in 2001.2% 7.
the surrounding areas experienced a population increase of 7. The commercial district’s median household income rose by 82 percent from $15. In 2004 there was a total of $176. long-term funding for the Fountain Square Main Street program remains a primary concern.6 million $ 9.5 million $ 4. Figure 7: Wheeler Arts Community.5 million Although the population in the Fountain Square Commercial District decreased by 3. Studio Residence Photo: Axis Architects The Fountain Square Cultural District is a young project. Project Fountain Block Wheeler Arts Community Murphy Art Center Fountain Square Streetscape Improvements Total Project Cost $ 2. Challenges include improving cultural identity (artists are not integrated into the local community) and enhancing the architecture. Fountain Square outpaced the city’s increase in median household income (41.936 in 1999. but they are marketing the area to the commercial development and real estate community. Property tax values increased by 40.2 percent in the areas around Fountain Square.Economic Indicators and Funding Economic Indicators. A boom in the condominium market in downtown Indianapolis is gradually working its way into the area. Private investment funds most of the current projects in Fountain Square.701 The following year there was $23. Fountain Square’s residential occupancy rate was 6 percent less than the city’s in both 1990 and 2000. SEND has managed to finesse multiple programs and initiatives through careful oversight in a very short time.5 percent at that time. but it will still take several more years to 42 . Fountain Square is just beginning to see interest and investment from private developers.200 42 $609. Similar to the change in median household income. Taking the cultural district project under its wings only a few years ago.5 percent between 1990-2000.7 percent). The success of the project is already visible in the revitalization of the neighborhood. SEND is still the primary developer. Future Outlook The development of the Fountain Square Commercial Corridor is an organic and slow process.4 million $ 1 million $ 1. Sustainability was a constant concern as the program was being developed.000 from public organizations. per capita income steadily rose over the same decade by 67 percent in Fountain Square and surrounding districts.8 percent) and per capita income (52.700 in private investment. Figure 6: Fountain Square Theatre Marquee. Streetscape and infrastructure improvements will potentially attract multiple new development opportunities on the commercial corridor.700 from public sources and $154. the residential occupancy rate rose by 1.3 percent from 1990 to 2000.331 in 1989 to $27. 2002-200518 Total jobs created in district (direct & indirect)19 Number of businesses assisted (2004-2005)20 Square footage developed or renovated21 Number of new businesses recruited to district22 Direct overall investment (20042005)23 77 116 177.5 percent in Fountain Square from 1995 to 2005. Currently. But while Indianapolis’s rate dropped by 2.000 in funding from private organizations and $5. Photo: Dale Bernstein. The neighboring census tracts experienced a 54 percent increase.
327. http://www.census. literary and performing artists who live and work in the neighborhood.determine the long-term economic impact. Indianapolis Cultural Development Commission Phone: 314-262-3394 E-mail: email@example.com. Washington St. Deputy Director of Cultural Tourism.org/eGov/City/DMD/IHPC/Distri cts/Historic/fountain. Eberry@Indygov. 200 E. IN 46204 317-3274MAC. 200 East Washington Street Suite 1802. rglenn@indygov. IN 46225.com Bob Glenn. 317. Office of Cultural Tourism. Suite 2160. City of Indianapolis www. SEND Interviews Conducted • • • Paul Baumgarten SEND. Now an Indianapolis destination. Office of Cultural Tourism. the historic community boasts a concentration of visual.cf m US Census Bureau. Indianapolis.org 43 . Southeast Side Neighborhood Development Phone: (317) 634-5079 Jenny Guimont. 100 South Capital Avenue.indygov. before and after renovation Photo: Paul Baumgarten Sources All Photographs provided by Paul Baumgarten. City County Building. Indianapolis.discoverfountainsquare. IN 46204. City of Indianapolis.htm Cultural Districts Program. http://quickfacts. Indianapolis. and national organizations transformed Fountain Square into a vital commercial hub in Indianapolis.gov/mainstreet/success/state_com munities.com/home. 617-262-4440 Figure 8 & 9: SEND housing project.org Works Cited Discover Fountain Square. • Ed Berry. http://www.html Indiana Main Street.gov/qfd/states/18/18360 03. Division of Planning. sate. Millions of dollars in investment and focused support from local.5112 Office.htm Department of Metropolitan Development.
an initiative designed to lure artists and associated economic benefits to Paducah. Lower Town owes much of its renewed energy to the Artist Relocation Program. a measure of talent. or a guide to culture and history. and workshops. Kentucky Figure 1: Promotional material for Paducah’s art district Introduction Art is often considered an expression. the once distressed neighborhood boasts historic homes and storefronts now used as residences. cafes. galleries. Located in western Kentucky along the Illinois border and Ohio River. the program attracted 62 44 . Adopted in 2000 with the Lower Town Neighborhood Plan.ARTS & ENTERTAINMENT DISTRICTS Artist Relocation Program Paducah.307) art is economic development. A walk through the 22 square block Lower Town neighborhood illustrates how this community has embraced its history and attracted new creative enterprises. but to residents of Paducah. 26. Kentucky (pop.
The neighborhood became increasingly transient – it was seventy percent rental by 2000 –and did not seem safe. The city adopted businesslicensing policies from Minneapolis and Kansas City. and ultimately improve the quality of life in Lower Town. a performing arts center. Plus. Figure 2 & 3: An abandoned Texaco Station (top) is now home to the Candle Station (bottom) artists and $15.000 sq ft With revitalization in progress. the city initiated the Lower Town Neighborhood Plan to reduce crime. a symphony. Following the Civil War. built an inventory of properties in Lower Town. 45 . and held visioning meetings with the community. bungalows. Economic Indicators. the city looked for ways to draw new residents and businesses. start new businesses. businessmen.Despite its historic character and proximity to downtown. increase safety and property ownership. The Plan Begins Following persuasion from resident and artist Mark Barone in 2000. and storefronts in decay. The economic turnaround is grounded in smart growth principles. By strengthening existing neighborhoods. Lower Town declined after World War II. Because of its age and grandeur.5 million in private investment by 2005. revitalizing abandoned buildings. and shopping.2 mil Total Area of New 48. wealthy from industrial development located on the river. New construction ceased in the 1950s. 2000 . The artist attraction strategy was a natural fit: the city felt that artists would buy properties. Lower Town was placed on the National Register of Historic Places in 1982. built mansions in the neighborhood. Paducah already had plenty of arts and tourism assets – theaters.5 mil Public Investment $1.2005 Total jobs created 97 Number of relocated artists 62 Number of new businesses 25 Vacancy rate decline 46% Ratio of private to public 13:1 investment Private Investment $15.000 sq ft Construction Total area of renovation 138. leaving large Victorian homes. and making it more convenient to get between homes and jobs. and draw tourism to the area. These efforts brought 65 percent of code-violating properties into compliance. and historic homes were carved into apartments. Glory and Decline Developed between the 1850s and 1920s. Lower Town is the oldest part of Paducah. a quilt museum. the program is creating benefits for residents throughout the city. due in part to increased drug activity.
• City pays up to $2500 for architectural services or other professional fees. and living space under one roof. “surrounding residents were already used to going to Paducah for conventions. The City of Paducah Planning Department estimates that since August 2000 building permits and business license revenue increased by $62. workspaces.127 Use Promotion-Artist Relocation Prog. studio.100 and property tax revenues increased by $45.110 Paducah Bank $8. • Discounted web pages.497. 46 . (‘01-‘05) Building Rehabilitation/New Construction Infrastructure Improvements Property Acquisition Miscellaneous TOTAL $113. Illinois. The Paducah Power System created a safer. Basic loan package is seven percent . festivals. Director of the Greater Paducah Economic Development Council.517 $6. required no down payment. • National marketing of arts district and Paducah. multi-use zoning.127 Wayne Sterling.354.Lower Town Plan Funding Source City of Paducah $1. Lower Town Today The Artist Relocation Program has drawn sixty-two artists to Paducah. Free lots for new construction. explained that because Paducah is the shopping center for a 15 county area. and tax exemptions on construction materials encouraged artists to buy structures and transform them into homes.500 $639. health care. renovate and maintain buildings.5 million in private investment – a 13 to one return on public funding – and delivered dozens of new jobs including 65 to construct. Bringing in the Artists The city launched a series of financial and regulatory incentives.887. fixed rate up to 300 percent of appraised value. and elsewhere more to see and do in the city.354.500 TOTAL Source: City of Paducah $16.924. Local broadcasters and newspapers donated airtime and page space to advertise fairs. gallery openings.30yr.” Tourists had long enjoyed Paducah’s festivals and downtown shops. and galleries. • Free lots for new construction as available. shopping. and 32 for art gallery assistants and marketing associates. Incentives Offered to Artists • Financing for purchase and rehab of an existing structure or building of a new structure.443 $158.924. Artists have opened 18 galleries and brought in seven service-oriented businesses. none has left or defaulted on a loan.954 $8.127 $16. more attractive streetscape by teaming with the city to install historic light fixtures.542. and showings. • Tax exemption on materials purchased for rehab or new construction. • Mixed-use zoning enables gallery. The tourist visitor’s bureau promoted gallery tours hosted by the artists. Tennessee.000. A group of community-minded institutions complemented the city’s efforts. and cultural events. and left the option to borrow against the entire appraised value of a structure. and used a national marketing campaign to spread the word. and marketed Lower Town to Ohio River paddleboat travelers. Paducah Bank offered loans with generous borrowing terms. The program has generated $15.517 Federal Highway Grant $5. Lower Town simply gives visitors from Missouri.
2002.8.Neighborhood improvement is widespread. p.13.” Art Calendar. April. Chair. KY and Its Artist Relocation Program.artcalendar. Rogers. 14.paducahchamber.. drawing national recognition and piquing local curiosity. “The Arts and Economic Incentives: Municipal and State Programs that Support Artists. 2003.com.htm Paducah Artist Relocation Program. Figure 4 & 5: Lower Town’s Leaping Trout Gallery before (top) and after (bottom).com/Paducaharticle. Nat’l Trust for Historic Preservation Works Consulted: Backer. Lower Town Neighborhood Plan/Artist Relocation Program Paducah.000 square feet of new construction since August 2000. Paducah Bank • Tom Mayes.htm.68. Paducah Area Chamber of Commerce. http://www. Kentucky Chapter. Planning Assoc. “Outstanding Project: Lower Town Neighborhood Plan and Artist Relocation Program” 2003. Summer. www.” Planning. “Goin Places: Paducah’s New Direction.org/paduc ahstats. p. http://www. p. as the new home of the Artist Relocation Program The program has done wonders for Lower Town’s image.com Hambrick. Greater Paducah Economic Development Council. Noelle. Board of Directors. “Bound for Paducah. City of Paducah • Wayne Sterling. Autumn.paducaharts. Jan/Feb. Non-artists in the area increasingly think of Lower Town as a place to start a business or own a home. 2003. Dialogue.12. www. Director Artist Relocation Program. And nearby neighborhoods view Lower Town as a model for revitalization. Assoc. “2004 Outstanding Planning: Special Community Initiative. “A Town of One’s Own: Can an influx of artists polish a historic Kentucky neighborhood?” Preservation Online.gpedc. 2002. p. www. with the remainder expected to be occupied within one or two years. “Small Town. Julie Ball. Sherri Voss. Sources All photos and figures courtesy of The Paducah Artist Relocation Program 47 .” Niche. May 17. The Fast Lane to Neighborhood Revitalization…Artist Relocation.000 square feet in renovations and 48. Art Calendar. Director. General Counsel. Kathryn Jenson.nationaltrust. p. Greater Paducah Econ. Amer. 2001. Feb. Stacy Smith. Big on Art: Paducah. More than half of the 50 vacant structures in Lower Town have been renovated and filled. September. Matthews. Vacancy rates have declined 46 percent thanks to 138.htm White. Hurley. Interviews Conducted: • Mark Barone. Amanda. Kentucky.org/magazine/ archives/arch_story/051702p. Development Council • Joe Framptom.
Marc. It also provided limited CDGB funding to the LISC Commercial Façade Rebate Program. Summer 2005. Bernard L. DC: Federal Transit Administration. 2005. 19 List of businesses. “The Estimated Value of New Investments Adjacent to DART LRT Stations: 19992005. Clower. CA. Planning Local Economic Development: Theory and Practice. “Emerging Trends in Real Estate. with and without direct assistance by SEND prior to opening.pdf. interfacing with the City.” 2003. “Greater Boston Office Market. Boston. MA. “Planned Communities at Middle Age. getting membership into the merchant association. 48 . cited in Chilton (see Works Cited) 14 A Public Improvement Fee (PIF) is a fee that developers may require their retail tenants collect on sales transactions to pay for public improvements on the site. 22 Businesses recruited to Fountain Square commercial district through staff’s or program volunteer’s direct contact and assistance. or façades done without grants). Available at: http://www. 7 National Trust for Historic Preservation.org/content.cfm ?PageContentTypeID=1&PageContentID=9 17 The city of Indianapolis supported SEND in housing rehab and home repair through HOME and CDGB funding. 9 Transportation Cooperation Research Program Report 102 Transit Oriented Development in the United States: Experiences. 3 Brookings Institution. Available at: www. Brendan. and Environmental Quality. Brownfield grant.END NOTES 1 Florida. Available at www.gov/smartgrowth/pdf/built. partnerships.” 2004. 12 O’Toole. 2005. façade and signage program leverage (matched by any private. businesses created and expanded. ‘Chapter 17: Portland’s TODs.brook. and Prospects.aspx?page= 7966§ion=2. Virginia: Thirty Years of Results. TA is defined as helping businesses with intervention services. January 2001. “Transit Oriented Development in Arlington County. June 2001.7. “Back to Prosperity: A Competitive Agenda for Renewing Pennsylvania. May 2004. marketing. inventory expansion. Available at: http://epa. “Competing in the Age of Talent: Quality of Place and the New Economy. TA voucher grants. Richard.” Richards Barry Joyce and partners.htm 4 Urban Land Institute and PricewaterhouseCoopers.” ULI: Washington. 15 The historical property tax revenue figures are based on developer estimates. 20 Staff or program volunteers provide direct technical assistance. 16 www. plus justified guess of additional jobs based on number of new jobs. 8 See for example: U.com/userctl. 23 Façade and signage grant awards (direct façade grant or subsidy amount). Weinstein. They have not provided direct financial support to commercial development projects. “Arts and Science Remake the Steel City. Transportation. 11 “Main Street Success Stories. 2 Blakely. pp. workforce development. 2002. training.org/html/TOD/case_studies. TA grant leverage.reconnecting america. 21 Direct and indirect. networking. 2006. 6 Leach. Our Built and Natural Environments: A Technical Review of the Interactions between Land Use. 13 Estimate of the International Council of Shopping Centers.” Grid Magazine.66-71. It differs from “labor force” employment which represents jobs held by residents within the jurisdiction working anywhere.discoverfountainsquare. Sage Publications: Thousand Oaks.” September 27. “Economic Statistics: The Main Street Program’s Success: Historic Preservation Equals Economic Development. pp. Challenges. July 20. and Terry L. providing information.htm.’ Washington. EPA.S. Hochstein.” December 2003.” January 2000. DC. 5 See for example: Carroll. Edward and Ted Bradshaw. 18 2005 figures reflect calculations through 3rd quarter. for profit. Dennis.mainstreet. includes façade improvements and frontage improved by signage or greenspace. 10 This category of employment is defined as jobs held by employees working within the boundaries of a specific jurisdiction. pp81. P 161. financing.valleymetro.edu/metro/publications/pa. contracts. square footage developed or renovated as a result of the program.” National Trust for Historic Preservation.” NYT. Available at: http://www.” 1995. cash dollars raised. Christine H.org. in-kind dollars raised.
NW.org .IEDConline. DC 20005 202.223.International Economic Development Council 734 15th St. Suite 900 Washington.7800 www.
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